Japan and South Korea are set to establish a joint supply network for cutting-edge fuels such as hydrogen and ammonia.
The announcement will be made by Prime Minister Fumio Kishida and South Korean President Yoon Suk-yeol on November 17 during the Asia-Pacific Economic Cooperation (APEC) meeting in the United States.
Both Japan and South Korea, nations heavily reliant on energy imports, envision a strategic alliance that goes beyond conventional fuel partnerships. The collaborative framework aims to enable negotiations on prices and volumes, fostering a synergy that maximizes the potential of hydrogen and ammonia in their energy landscapes. As part of this initiative, state-backed financial institutions are expected to play a pivotal role by facilitating companies in raising funds for projects related to these sustainable fuels, not only within their borders but also beyond.
At the heart of this collaboration lies a shared vision for the widespread adoption of hydrogen and ammonia as clean energy sources. Both countries are at the forefront of global efforts to embrace green and renewable energy alternatives. Hydrogen, with its potential to revolutionize transportation and industry, takes center stage, while ammonia emerges as a versatile candidate for co-firing with coal, a move that aligns with Japan’s ambition to diversify its energy mix and reduce reliance on fossil fuels.
The establishment of a joint supply network signifies a significant shift in the geopolitical landscape of energy. By working together to secure these critical fuels, Japan and South Korea aim to enhance energy security and reduce their vulnerability to external supply disruptions. Additionally, the joint effort reflects a commitment to sustainability, aligning with global initiatives to combat climate change by transitioning to cleaner, greener energy alternatives.